NGX Rises by N157bn FMCG Stocks Rally
The Nigerian Exchange (NGX) rallied again on Tuesday as equities investors took position amidst uncertainties in the economy. Following bargain hunting, stock market year-to-date return popped higher, racing ahead of an annual inflation rate of 24.08%.
Other key performance indicators rose as the market witnessed a similar pattern that started at the beginning of the week. The NGX All Share Index registered an increase of 0.44%, closing at 65,488.67 points.
This upward momentum was primarily fuelled by heightened buy-side interest in notable stocks such as BUAFOODS 7.91%, DANGSUGAR 3.89%, GUINNESS 2.81%, TRANSCORP 2.28%, and other listed equities.
Data from the local bourse showed that the year-to-date return for the index surged to 27.78%, while the monthly returns printed higher at 1.79%. The total trade value experienced an uptick of 3.26%, totalling N4.12 billion. Likewise, the trade volume exhibited an increase of 26.72%, with a cumulative 293.46 million units traded through 5,895 deals.
Activity level improved as volume and value traded rose 26.7% and 3.3% to 293.5m units and ₦4.1bn respectively. Performance across coverage sectors was mixed, albeit positively skewed, as 3 indices gained, and 2 lost, while the Industrial Goods index closed flat.
The Consumer Goods and Insurance indices rose 3.8% and 0.5% respectively, owing to price appreciation in BUAFOODS (+7.9%), DANGSUGAR (+3.9%), CORNERST (+9.8%) and CHIPLC (+3.5%).
Trailing, the AFR-ICT index rose 1bp due to gains in CWG (+9.7%). Conversely, the Banking and Oil & Gas indices dipped 0.9% and 0.2% respectively, following losses in ACCESSCORP (-1.2%), UBA (-1.4%), and ETERNA (-4.8%).
Despite the uptrend, investor sentiment, as measured by market breadth, weakened to -0.14x versus 0.23x previously recorded as 16 listed companies stocks advanced, 26 declined, and 71 closed flat in the local bourse on Tuesday.
In the next trading session, Afrinvest expects a mild gain on the local bourse in the absence of any negative trigger. Overall, equities market capitalisation advanced by ₦156.7 billion to ₦35.8 trillion. #NGX Rises by N157bn FMCG Stocks Rally